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Freight Management Holdings, operator of the Border Express and Couriers Please businesses, is heading back into Australian hands with Singapore Post securing a $775.9 million sale of the business to Pacific Equity Partners.
The last-mile parcel delivery business, which has been progressively acquired by SingPost since 2020 and moved to full ownership at the end of last year, will book a S$312.1 million ($358 million) profit on the sale which places an enterprise value of $1 billion on the business.
"The board believes this divestment is the best option for shareholders by crystallising the unrealised value of the business and bringing forward unlocking value for shareholders," says Simon Israel, the chairman of SingPost, which counts Optus owner Singtel as its largest shareholder.
“Since our initial investment in FMH Group in 2020, we have witnessed the group achieve extraordinary growth. Now, with its strong market position and growth pathway the board has decided it is time to realise the substantial shareholder value created.
“The transition of FMH Group ownership to PEP (Pacific Equity Partners) will support its continued upward trajectory.”
The Sydney-based PEP says that under its ownership FMH Group will be “well-supported to build on its strong foundation, accelerate its growth strategy, and continue delivering outstanding value and market leading service to its customers”.
“FMH Group has a stellar track record of growth, a passionate team and a clear and compelling trajectory,” says PEP managing director David Brown.
“We look forward to supporting them to build on their success and facilitate further opportunities."
The sale of FMH follows a strategic review by SingPost last year that led to a number of unsolicited inquiries being received from potential buyers of the business. The company decided to officially place the company on the market earlier this year.
SingPost’s sale to PEP is still subject to regulatory approvals, including from the Foreign Investment Review Board, as well as shareholder approval.
FMH Group CEO Simon Slagter describes the acquisition by PEP as a milestone for the group.
“We have built a foundation of trust with our customers, achieved significant growth, and led the way in providing excellent logistics services,” says Slagter.
“The investment of Pacific Equity Partners will help us take the next leap forward, empowering us to further enhance our technology platform, turbocharge our business development function and pursue strategic acquisition opportunities, strengthening our position as industry leader and unlocking even greater value for our customers.”
FMH Group, a Melbourne-headquartered group that was previously owned by FMH management shareholders prior to SingPost’s acquisition, is a diversified logistics holding company with operations across fourth-party logistics, warehousing, transportation and technology.
The group’s businesses include EFM Logistics, logistics technology company Flip and freight services providers Border Express, BagTrans, Spectrum Logistics, CouriersPlease and Logistics Holdings Australia, which includes subsidiaries GKR Transport, Niche Logistics and Formby Logistics.
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